Investing in the real estate sector adds stability to one’s portfolio, mainly because volatility in property prices is far lower than what is experienced by stocks. So, investors willing to hold long-term positions would do well to consider real estate mutual funds as these add stability and bring in steady returns. This category of funds also offers superior protection against inflation.
Below we share with you three top-rated real estate mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity International Real Estate Fund FIREX invests the majority of its assets in common stocks of non-U.S. companies. The fund normally invests in securities of companies engaged in the real estate industry as well as other real estate related investments. FIREX has three-year annualized returns of 10.7%.
As of the end of May 2021, FIREX held 91 issues, with 6.11% of its assets invested in Vonovia SE.
Manning & Napier Real Estate Series Class S MNREX aims for high current income and long-term capital growth by investing primarily in companies in the real estate industry. The fund invests at least 80% of assets in securities of companies that are principally engaged in the real estate industry. MNREX has three-year annualized returns of 10.7%.
Elizabeth H. Mallette is one of the fund managers of MNREX since 2013.
TIAA-CREF Real Estate Securities Fund Retirement Class TRRSX seeks maximum total returns over the long run through growth of capital and current income. TRRSX invests a large chunk of its assets in companies primarily involved in operations related to the real estate domain. The fund may invest a maximum of 15% of its assets in securities issued by foreign entities. TRRSX has three-year annualized returns of 15%.
TRRSX carries an expense ratio of 0.75% compared with the category average of 1.11%.
To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds.
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